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admin · Site Admin Joined: 25 Sep 2008 Posts: 427

Why oh why is it that when prices go up- eg fuel because of raw material cost rises-when the same material falls back lower than before that the commensurate drop in retail prices never quite seems to go back as low?

Stickler · Joined: 07 Oct 2008 Posts: 17 Location: Hampshire

I'm no expert but the exchange rate probably doesn't help and as oil is priced in USD and as the exchange rate for GBP has dropped it costs more GBP for the same quantity of oil than it did a few months ago.

In addition, I expect the petrol companies buy futures to try to level things out over the longer term and if they've bought too high it may take time for a sharp drop to work through. But then they probably hedge against the USD/GBP rate anyway. So, perhaps they are slightly adrift?

Plus, they probably like to think they can convince us of the above and capitalise on it for a short period!

If we all stopped buying for a week or two the prices would probably come down a lot faster. But unless everyone does it, some companies will probably take advantage of us.

Stickler (with no beating for 2 weeks due to cancellations!

)
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Nark · Posted: Thu Oct 30, 2008 1:44 pm Post subject:

THe suggestion has been made on a number of occassions that we should all stop buying petrol from just one of the big players. This should lead t5hem to reducing their prices to attract us back which in turn forces others to reduce their prices to keep us. May work but as far as I know it's never been tried.